EU Enlargement: Economic Implications for Countries and Industries

32 Pages Posted: 13 Nov 2001

See all articles by Arjan Lejour

Arjan Lejour

CPB Netherlands Bureau of Economic Policy Analysis; Tilburg University

Ruud A. De Mooij

International Monetary Fund (IMF); CESifo (Center for Economic Studies and Ifo Institute); Oxford University Centre for Business Taxation

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

Date Written: October 2001

Abstract

This paper explores the economic consequences of the enlargement of the European Union with countries from Central and Eastern Europe. We focus on integration aspects that go beyond the reduction of formal trade barriers, namely accession to the internal market and free movement of labour. The economic implications for sixteen industries in several European countries are assessed by using WorldScan, a CGE model for the world economy. The results suggest that the candidate member states will gain substantially from accession to the internal market, although some sectors in these countries will shrink. Most EU countries will experience small welfare increases. We also find that the internal market effects are large compared to the economic effects of removing formal trade barriers and migration.

JEL Classification: F13, F15

Suggested Citation

Lejour, Arjan M. and De Mooij, Ruud A. and Nahuis, Richard, EU Enlargement: Economic Implications for Countries and Industries (October 2001). Available at SSRN: https://ssrn.com/abstract=287847

Arjan M. Lejour

CPB Netherlands Bureau of Economic Policy Analysis ( email )

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HOME PAGE: http://www.cpb.nl/en/medewerkers/arjan-lejour

Tilburg University ( email )

PO Box 90153
Tilburg, 5000 LE Ti
Netherlands
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HOME PAGE: http://https://research.tilburguniversity.edu/en/persons/arjan-lejour

Ruud A. De Mooij (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Oxford University Centre for Business Taxation ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

HOME PAGE: http://people.few.eur.nl/demooij/

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

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